The former Newcastle United player spent over a decade at Old Trafford before he switched to St James' Park, with the 36-year-old also playing in China before retiring this year.
Butt is currently undertaking his coaching badges, and whilst he has been observing sessions at the Red Devils’ Carrington training ground, he suggested it is too early to go into management despite having already being linked with the Oldham Athletic job.
Speaking to Manchester United’s official website, Butt said: "I've started my badges now and am getting the hours in.
"I'll get assessed in the next five or six months. I go to Carrington a lot and just watch, I don't really take any of the sessions.
"I know for a fact management is what I want to do. Whether I'll be good at it is another thing. We'll see.
"There were rumours about Oldham and someone asked if I would be interested but I never was as it was too soon for me.
"I wanted to have a year away from it, spend time with my family and go away with the kids in the school holidays. It's been great but I think I feel now I'm ready to do something.
"There are a lot of things I'm able to do now but my ultimate aim is to be a manager.
"That's what I want to do, whenever that happens, but I don't want to just jump into a job, take it on and not be able to do it. I want to slowly get there and be ready for it."